SPARC Group, JCPenny Merge to Form Catalyst BrandsSPARC Group, JCPenny Merge to Form Catalyst Brands

SPARC Group and JCPenny have announced their merger to form Catalyst Brands, a new organization combining six American retail brands. Under the new joint venture, Catalyst Brands brings together SPARC Group’s Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica with JCPenney and its exclusive private brands, including Stafford, Arizona and Liz Claiborne. 

The combined portfolio will utilize Catalyst Brand’s broad consumer reach through a robust distribution network of owned stores, e-commerce sites and wholesale partners. Over the past three years, this network has served over 60 million customers. 

Catalyst Brands launches with an impressive portfolio, generating over $9 billion in revenue annually. It is supported by 1,800 stores, 60,000 employees, and $1 billion in liquidity. The company’s broad consumer reach includes physical retail locations, e-commerce platforms, and wholesale partnerships. Catalyst Brands serves over 60 million customers, leveraging its scale to drive innovation and operational efficiency. 

JCPenney and SPARC Group co-own the organization through an all-equity transaction with Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein as shareholders. As part of its strategic plans, Catalyst Brands has sold Reebok's U.S. operations and is evaluating options for Forever 21. 

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Marc Rosen, former chief executive officer, JCPenney, will lead Catalyst Brands as its chief executive officer, with three brand chief executive officers overseeing the portfolio that report to Rosen. The leadership structure is now as follows: 

“Catalyst Brands brings together the rich heritage of six unique brands with modern energy and a new vision for success,” says Rosen. “The word ‘catalyst’ reflects our drive to accelerate innovation and energy and amplify the impact of this powerhouse portfolio. Together, we bring scale, expertise and broad appeal to customers across America. For us, customers are at the heart of what we do. We have a shared belief that customers deserve fashion and style of great quality for any and every moment in life. We will leverage our resources and best-in-class industry talent to grow our brands further.” 

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The organization plans to capitalize on advanced product design, AI-driven inventory management, and robust supplier relationships while scaling its brands and providing value across diverse market segments, from formalwear and outdoor gear to casual family apparel. 

“Our relationships with more than 60 million customers and the deep data we have create a compelling consumer value proposition across our brands,” says Rosen. “We can design a more personalized shopping experience, offer unified loyalty and credit card programs, and ultimately, cross-sell more effectively. That’s one example of the many benefits we’ll see in this combination. With a clean balance sheet, we’re in great position to move forward.”